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Blossom Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to assign the overhead costs to
Blossom Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to assign the overhead costs to the product. The activities and related overhead costs are as follows: Activity Total Costs Volume of Cost Driver Material handling $464,8001 116.200 parts Purchase onders 192,850 25 orders Set-up hours 343830 157 hours Machining 477,750 3250 machine hours Total costs $1.479.230 The above activities are used by the two different products as follows WX-34 PC-21 Material handing 75,640 parts 40.560 parts Purchase orders Set-up hours 23 104 hours 12 53 hours Number of machine hours 2,120 machine hours 1.130 machine hours Calculate how much of the material handling cost will be allocated to PC-21 Material handling cost allocated to PC-21 S eTextbook and Media Determine the ABC allocation rate for purchase orders Activity-based allocation rate eTextbook and Media per order Calculate how much of the set-up costs will be allocated to WX-34 Set-up costs allocated to WX-34 $ eTextbook and Media Calculate how much of the total activity costs will be allocated to PC-21 Total activity costs allocated to PC-21
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